38958 Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules 

investigation and/or evaluation. Access 

could reveal the identity of the source 

of the information and constitute a 

breach of the promised confidentiality 

on the part of the Department. Such 

breaches ultimately would restrict the 

free flow of information vital to the 

determination of a candidate’s 

qualifications and suitability, among 

other determinations. The Department 

also relies on certain examination 

materials to assess and evaluate an 

individual’s qualifications for an 

applicable position. Access and/or 

amendment to such material could 

reveal information about the 

examination and vetting process and 

could compromise its objectivity and/or 

fairness. Access and/or amendment to 

such material could also inappropriately 

advantage future candidates with 

knowledge of the examination materials. 

Finally, providing the individual access 

or amendment rights could result in the 

release of properly classified 

information which would compromise 

the national defense or disrupt foreign 

policy. 

(3) From subsection (e)(1), because in 

the collection of information for 

investigative and evaluative purposes, it 

is impossible to determine in advance 

what exact information may be of 

assistance in determining the 

qualifications and suitability of the 

subject of an investigation and/or 

evaluation. Information which may 

seem irrelevant, when combined with 

other seemingly irrelevant information, 

can on occasion provide a composite 

picture of a candidate which assists in 

determining whether that candidate 

should be nominated for appointment. 

Relevance and necessity are questions of 

judgment and timing, and it is only after 

the information is evaluated that the 

relevance and necessity of such 

information can be established. In 

interviewing individuals or obtaining 

other forms of information during OLP 

processes, information may be supplied 

to OLP which relates to matters 

incidental to the primary purpose of 

OLP’s processes, but also relates to 

matters under the investigative 

jurisdiction of another agency. Such 

information cannot readily be 

segregated. 

(4) From subsections (e)(4)(G) and (H), 

and subsection (f), because this system 

is exempt from the access and 

amendment provisions of subsection 

(d). 

(c) The General Files System of the 

Office of Legal Policy (JUSTICE/OLP– 

003) system of records is exempt from 

subsections 552a(c)(3) and (4); (d); 

(e)(1), (2) and (3), (e)(4)(G) and (H), and 

(e)(5); and (g) of the Privacy Act, 

pursuant to 5 U.S.C. 552a(j)(2), (k)(1), 

(k)(2) and (k)(5). These exemptions 

apply only to the extent that 

information in this system is subject to 

exemption pursuant to 5 U.S.C. 552(j), 

(k). Where compliance would not 

appear to interfere with or adversely 

affect OLP’s processes, the applicable 

exemption may be waived by OLP. 

(d) Exemptions from the particular 

subsections are justified for the 

following reasons: 

(1) From subsection (c)(3) because 

making available to a record subject the 

accounting of disclosures from records 

concerning him/her would reveal 

investigative interest on the part of the 

Department as well as the recipient 

agency. This would permit record 

subjects to impede the investigation, 

e.g., destroy evidence, intimidate 

potential witnesses, or flee the area to 

avoid inquiries or apprehension by law 

enforcement personnel. 

(2) From subsection (c)(4) because this 

system is exempt from the access 

provisions of subsection (d) pursuant to 

subsections (j) and (k) of the Privacy 

Act. 

(3) From subsection (d) because the 

records contained in this system relate 

to official Federal investigations. 

Individual access to these records might 

compromise ongoing investigations, 

reveal confidential informants, or 

constitute unwarranted invasions of the 

personal privacy of third parties who 

are involved in a certain investigation. 

Amendment of records would interfere 

with ongoing criminal law enforcement 

proceedings and impose an impossible 

administrative burden by requiring 

criminal investigations to be 

continuously reinvestigated. 

(4) From subsections (e)(1) and (5) 

because in the course of law 

enforcement investigations, information 

may occasionally be obtained or 

introduced, the accuracy of which is 

unclear or which is not strictly relevant 

or necessary to a specific investigation. 

In the interests of effective law 

enforcement, it is appropriate to retain 

all information since it may aid in 

establishing patterns of criminal 

activity. Moreover, it would impede the 

specific investigation process if it were 

necessary to assure the relevance, 

accuracy, timeliness and completeness 

of all information obtained. 

(5) From subsections (e)(2) because in 

a law enforcement investigation the 

requirement that information be 

collected to the greatest extent possible 

from the subject individual would 

present a serious impediment to law 

enforcement in that the subject of the 

investigation would be informed of the 

existence of the investigation and would 

therefore be able to avoid detection, 

apprehension, or legal obligations and 

duties. 

(6) From subsection (e)(3) because to 

comply with the requirements of this 

subsection during the course of an 

investigation could impede the 

information gathering process, thus 

hampering the investigation. 

(7) From subsections (e)(4)(G) and (H) 

because this system is exempt from the 

access provisions of subsection (d) 

pursuant to subsections (j) and (k) of the 

Privacy Act. 

(8) From subsection (g) because this 

system is exempt from the access and 

amendment provisions of subsection (d) 

pursuant to subsections (j) and (k) of the 

Privacy Act. 

Dated: July 1, 2021. 

Peter A. Winn, 

Acting Chief Privacy and Civil Liberties 

Officer, United States Department of Justice. 

[FR Doc. 2021–14995 Filed 7–22–21; 8:45 am] 

BILLING CODE 4410–CW–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 1 

RIN 2900–AR20 

Threshold for Reporting VA Debts to 

Consumer Reporting Agencies 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

regulations around the conditions by 

which VA benefits debts or medical 

debts are reported to consumer 

reporting agencies (CRA). The Johnny 

Isakson and David P. Roe, M.D. Veterans 

Health Care and Benefits Improvement 

Act of 2020 provides the Secretary 

authority to prescribe regulations that 

establish the minimum amount of a 

benefits or medical debt that the 

Secretary will report to the CRA. This 

proposed change will establish the 

methodology for determining a 

minimum threshold for debts reported 

to CRA. 

DATES: Comments must be received on 

or before September 21, 2021. 

ADDRESSES: Comments may be 

submitted through www.regulations.gov 

or mailed to Debt Management Center, 

Office of Management, 189, 1 Federal 

Drive, Suite 4500, Fort Snelling, MN 

55111. Comments should indicate that 

they are submitted in response to ‘‘RIN 

2900–AR20—Threshold for Reporting 

VA Debts to Consumer Reporting 

Agencies. Comments received will be 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules 38959 

available at regulations.gov for public 

viewing, inspection, or copies. 

FOR FURTHER INFORMATION CONTACT: 

Jason Hoge, Director of Operations, Debt 

Management Center, Office of 

Management, 189, 1 Federal Drive, Suite 

4500, Fort Snelling, MN 55111, (612) 

725–4337. (This is not a toll-free 

telephone number.) 

SUPPLEMENTARY INFORMATION: 

Summary of Proposed Regulatory 

Changes 

We propose to amend VA’s regulation 

that governs reporting of delinquent 

debts to CRA. This rulemaking would 

update the regulation to comply with 

section 2007 of Public Law 116–315, the 

Johnny Isakson and David P. Roe, M.D. 

Veterans Health Care and Benefits 

Improvement Act of 2020. Section 2007 

amends chapter 53 of title 38, United 

States Code by adding section 5320 as 

follows: ‘‘The Secretary shall prescribe 

regulations that establish the minimum 

amount of a claim or debt, arising from 

a benefit administered by the Under 

Secretary for Benefits or Under 

Secretary for Health, that the Secretary 

will report to a consumer reporting 

agency under section 3711 of title 31.’’ 

This proposed amendment will 

establish the methodology for 

determining the minimum threshold for 

reporting certain VA debts to CRA. It 

will also exclude from the minimum 

threshold those debts in which there is 

an indication of fraud, 

misrepresentation, or bad faith on the 

part of the debtor. 

Background on Governing Statutes 

The Debt Collection Improvement Act 

of 1996 (DCIA), in part, mandated 

agencies to report delinquent debts to 

CRA. 31 U.S.C. 3711(e); Sec. 31001(k), 

Public Law 104–134, 110 Stat. 1321. 

The purpose of the DCIA includes 

maximizing collection of delinquent 

debts by ensuring quick action to 

recover debts, use of appropriate 

collection tools, and minimizing the 

costs of debt collection. Sec. 31001(b), 

Public Law 104–134. 

Section 5320 of title 38, United States 

Code, authorizes VA to ‘‘establish the 

minimum amount of a claim or debt, 

arising from a benefit administered by 

the Under Secretary for Benefits or 

Under Secretary for Health, that the 

Secretary will report to a consumer 

reporting agency under section 3711 of 

title 31.’’ The intent of section 5320 is 

to lessen negative impact of CRA reports 

on Veterans. 

Introduction to Proposed Regulatory 

Changes 

As explained in more detail below, 

we propose to amend 38 CFR 1.916 to 

comply with 38 U.S.C. 5320, to establish 

a minimum threshold for reporting 

debts to CRA. 

In accordance with 31 U.S.C. 3711(e), 

the VA Debt Management Center (DMC) 

is responsible for reporting delinquent 

debts to CRA. Prior to January 5, 2021, 

DMC reported an average of 5,000 

delinquent Veteran accounts monthly. 

DMC regularly receives complaints from 

Veterans whose accounts have been 

reported to CRA. Common complaints 

from Veterans include: Loss of security 

clearance, inability to obtain approval 

for home loans or home refinancing, and 

difficulty securing rental housing. 

This proposed amendment recognizes 

that the debts described in 38 U.S.C. 

5320 are fundamentally different from 

consumer debt. Debts arising from a 

benefit administered by the Under 

Secretary for Benefits or the Under 

Secretary for Health may result from a 

variety of scenarios, including 

overpayments that are not the fault of 

the Veteran. 

Section 5320 authorizes the Secretary 

to establish a minimum threshold that 

will ultimately reduce the number of 

debts that will be reported to CRA. This 

will, in turn, decrease the number of 

Veterans negatively impacted by these 

reports. The VA’s mission is to ‘‘care for 

those who shall have borne the battle 

and for their families and survivors.’’ 

Negative credit reports may cause 

housing insecurity or job loss, and this 

result is inconsistent with VA’s mission. 

38 CFR 1.916— Disclosure of Debt 

Information to Consumer Reporting 

Agencies (CRA) 

We propose to amend 38 CFR 1.916, 

which sets forth the requirements for 

reporting delinquent debts to CRA, by 

inserting subparagraphs (c)(1) through 

(3) to provide the methodology used by 

the Secretary to establish the minimum 

threshold. This section would also 

clarify that the minimum threshold 

applies only to a debt of an individual 

that arises from a benefit administered 

by the Under Secretary for Benefits or 

Under Secretary for Health. 

We propose subparagraphs (c)(1) 

through (3) state: 

1. The Secretary has established a 

minimum threshold for a debt, arising 

from a benefit administered by the 

Under Secretary for Benefits or Under 

Secretary for Health, that the Secretary 

will report to a consumer reporting 

agency under section 3711 of title 31. 

(2) VA will only report those debts 

that meet the following standards: 

(i) The debt is classified as currently 

not collectible. For purposes of this 

paragraph, the debt is currently not 

collectible if VA has exhausted available 

collection efforts, including, as 

appropriate, referrals for administrative 

offset and enforced collection; 

(ii) The debt is not owed by an 

individual who is determined by VA to 

be catastrophically disabled or has 

reported to VA a gross household 

income below the applicable 

geographically adjusted income limits 

that would entitle a VA beneficiary to 

cost-free health care, medications and/ 

or beneficiary travel; and 

(iii) The outstanding debt amount is 

over $25, or such higher amount VA 

may from time to time prescribe, in 

accordance with section 1.921 of this 

part. 

(3) The minimum threshold set forth 

in this paragraph will not apply if there 

is an indication of fraud, 

misrepresentation, or bad faith on the 

part of the individual in connection 

with the debt. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a 

significant regulatory action under 

Executive Order 12866. The Regulatory 

Impact Analysis associated with this 

rulemaking can be found as a 

supporting document at 

www.regulations.gov. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule will not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act (5 U.S.C. 601–612). The 

regulations established by this 

rulemaking do not impose burdens or 

otherwise regulate the activities of any 

small entities outside of VA. Therefore, 

pursuant to 5 U.S.C. 605(b), the initial 

and final regulatory flexibility analysis 

requirements of 5 U.S.C. 603 and 604 do 

not apply. 


khammond on DSKJM1Z7X2PROD with PROPOSALS
38960 Federal Register / Vol. 86, No. 139 / Friday, July 23, 2021 / Proposed Rules 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule will have 

no such effect on State, local, and tribal 

governments, or on the private sector. 

Paperwork Reduction Act 

This proposed rule contains no 

provisions constituting a collection of 

information under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521). 

Catalog of Federal Domestic Assistance 

There are no Catalog of Federal 

Domestic Assistance numbers and titles 

for this rule. 

List of Subjects in 38 CFR Part 1 

Administrative practice and 

procedure, Archives and records, 

Cemeteries, Claims, Courts, Crime, 

Flags, Freedom of information, 

Government contracts, Government 

employees, Government property, 

Infants and children, Inventions and 

patents, Parking, Penalties, Postal 

Service, Privacy, Reporting and 

recordkeeping requirements, Seals and 

insignia, Security measures, Wages. 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs approved this 

document on June 23, 2021 and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. 

Luvenia Potts, 

Regulations Development Coordinator, Office 

of Regulation Policy & Management, Office 

of the Secretary, Department of Veterans 

Affairs. 

For the reasons stated in the 

preamble, the Department of Veterans 

Affairs proposes to amend 38 CFR part 

1 as set forth below: 

PART 1—GENERAL PROVISIONS 

■ 1. The authority citation for part 1 is 

revised to read as follows: 

Authority: 31 U.S.C. 3711(e); 38 U.S.C. 

501, 5701(g) and (i); 38 U.S.C. 5320. 

§ 1.916 [Amended] 

■ 2. Amend § 1.916 by revising 

paragraph (c) to read as follows: 

* * * * * 

(c) Subject to the conditions set forth 

in this paragraph and paragraph (d) of 

this section, information concerning 

individuals may be disclosed to 

consumer reporting agencies for 

inclusion in consumer reports 

pertaining to the individual, or for the 

purpose of locating the individual. 

Disclosure of the fact of indebtedness 

will be made if the individual fails to 

respond in accordance with written 

demands for repayment, or refuses to 

repay a debt to the United States. In 

making any disclosure under this 

section, VA will provide consumer 

reporting agencies with sufficient 

information to identify the individual, 

including the individual’s name, 

address, if known, date of birth, VA file 

number, and Social Security number. 

(1) The Secretary has established a 

minimum threshold for a debt, arising 

from a benefit administered by the 

Under Secretary for Benefits or Under 

Secretary for Health, that the Secretary 

will report to a consumer reporting 

agency under section 3711 of title 31. 

(2) VA will only report those debts 

that meet the following standards: 

(i) The debt is classified as currently 

not collectible. For purposes of this 

paragraph, the debt is currently not 

collectible if VA has exhausted available 

collection efforts, including, as 

appropriate, referrals for administrative 

offset and enforced collection; 

(ii) The debt is not owed by an 

individual who is determined by VA to 

be catastrophically disabled or has 

reported to VA a gross household 

income below the applicable 

geographically adjusted income limits 

that would entitle a VA beneficiary to 

cost-free health care, medications and/ 

or beneficiary travel; and 

(iii) The outstanding debt amount is 

over $25, or such higher amount VA 

may from time to time prescribe, in 

accordance with section 1.921 of this 

part. 

(3) The minimum threshold set forth 

in this paragraph will not apply if there 

is an indication of fraud, 

misrepresentation, or bad faith on the 

part of the individual in connection 

with the debt. 

* * * * * 

[FR Doc. 2021–15490 Filed 7–22–21; 8:45 am] 

BILLING CODE 8320–01–P 

COMMITTEE FOR PURCHASE FROM 

PEOPLE WHO ARE BLIND OR 

SEVERELY DISABLED 

41 CFR Parts 51–1, 51–2, 51–3, 51–4, 

51–5, 51–6, 51–7, 51–8, 51–9, and 51– 

10 

RIN 3037–AA13 

Provisions Relating to Public 

Contracts 

AGENCY: Committee for Purchase From 

People Who Are Blind or Severely 

Disabled. 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: This proposed rule would 

amend the Committee for Purchase 

From People Who Are Blind or Severely 

Disabled’s (Committee) regulations to 

address outdated information and 

proposes correction and clarifications 

within the chapter or with the JavitsWagner-O’Day Act or the AbilityOne 

Program. This regulation was originally 

published in 1991 and changes in 

Committee practices and concepts have 

occurred which requires updates to the 

CFR. These updates merely are 

administrative in nature. 

DATES: Comments should be submitted 

on or before August 23, 2021. 

ADDRESSES: You may submit your 

comments, identified by ‘‘RIN 3037– 

AA13’’ by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Comments received will be posted 

without change to www.regulations.gov 

including any personal information 

provided. To confirm receipt of your 

comment(s) please check 

www.regulations.gov approximately two 

to three days after submission to verify 

posting (except allow for 30 days for 

posting of comments submitted by 

mail). 

FOR FURTHER INFORMATION CONTACT: 

Shelly Hammond, shammond@

abilityone.gov, (571) 457–9468. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Committee’s last rule making 

administrative changes was published 

in the Federal Register at June 2, 2000, 

at 65 FR 35286. 

The Committee seeks to provide the 

following administrative changes based 

on changes to the Office of the Federal 

Register’s language and processes. The 

Commission seeks to remove mailing 

address and add email address for the 

Committee and Central Nonprofit 

Agencies. 


khammond on DSKJM1Z7X2PROD with PROPOSALS